Chairman Lee Jay-hyun of CJ Group. (Photo: CJ Cheiljedang)

CJ Cheiljedang is shifting into a bio company. Its mainstay food business shows signs of somewhat sluggishness, but its bio business has seen an explosive growth to help the company achieve the best-ever Q2 business performance.

CJ Cheiljedang’s turnabout is expected to be accelerated down the road. CJ Cheiljedang, ventured into the pharmaceutical market once again in three years by acquiring Chunlab recently.

The public limelight is put on whether CJ Cheiljedang could grow into a bio juggernaut with a competitive edge in a variety of areas such as health functional food and new drugs.

 
In a consolidated financial statement, CJ Cheiljedang posted 6,309.2 billion won in sales and 469.6 billion won in operating profit in the second quarter of this year.

The figures represent a 6.6 percent rise and a 22 percent surge compared to the same period of the previous year.

In Q2 sales, excluding the business performance of CJ Logistics, CJ Cheiljedang logged 3,755.8 billion won, a 8.5 percent year-on-year increase.

During the same period, the company chalked up 379.9 billion won, a 26 percent year-on-year jump, which is the best-ever Q2 business performance.

The food business showed signs of somewhat sluggishness. CJ Cheiljedang saw the food business rise 1 percent year-on-year to 2,212.6 billion won in Q2.

The lackluster food business was mainly attributable to rising logistics costs, but the business is analyzed to have seen its profitability improve thanks to intensive restructuring of profit models and the popularity of core products such as Bibigo and Hatban.

Diversification of channels has also played a part. CJ Cheiljedang saw on-line sales of processed foods jump 23 percent year-on-year. B2B sales also surged 9 percent.

Thanks to these, the company saw the portion of one-line, B2B and convenience store sales top 30 percent to diversify growth channels. Despite the base effect and declining currency, the company saw overseas sales surpass 1 trillion won.

The good business performance was owed to Bibigo Mandu’s topping the U.S. market with a 38 percent share and the strong showing of K-food in areas such as Japan and China.

The bio business made a splash. CJ Cheiljedang saw the bio business post 917.6 billion won in sales and 193.9 billion won in operating profit in Q2.

The figures represent a 23.5 percent surge and a 74.8 percent jump year-on-year, respectively. Behind the growth of the bio business are tackling rising raw materials and logistics costs through the diversification of global production centers and differentiated technology marketing.

CJ Cheiljedang, Designated as Shared Growth Company for 5th Consecutive Year

CJ CheilJedang was designated as “top shared growth honorary company following the disclosure of the shared growth index, announced by the Korea Commission for Corporate Partnership (KCCP).

CJ CheilJedang became the sole company to maintain the status of the “top shared growth honorary company for the fifth consecutive year.

The shared growth index evaluation is an index of measuring shared growth levels of conglomerates. The index is determined based on overall shared growth evaluation and the evaluation of the execution of fair trade contracts by the Fair Trade Commission.

CJ CheilJedang strives to strengthen the long-term competitiveness of its business under its unique CSV (creating shared value) management system and create a sustainable industrial ecosystem for shared growth and shared values, thereby developing into a global company respected by the country and society.

 
Based on compliance with three principles, specifically, legal compliance, ethical management, and safety management, the company puts into practice CSV management and operates business in connection with CSV management of CJ Group.

We approach business with a CSV mindset to grow into a global lifestyle company that creates healthy, happy and convenient lifestyles.

Further, the company pursues sustainable growth based on its founding philosophy ‘Contributing to the national economy’ to contribute to enhancing the social economy and enable healthier lives of people.